IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 36254 of 2010(F)
1. THE KONDOTTY SERVICE CO-OP. BANK LTD.
... Petitioner
Vs
1. THE INCOME TAX OFFICER (CIB),
... Respondent
2. THE ASSISTANT DIRECTOR OF INCOME TAX,
3. THE COMMISSIONER OF INCOME TAX(CIB),
4. UNION OF INDIA,
For Petitioner :SRI.U.K.DEVIDAS
For Respondent : No Appearance
The Hon'ble MR. Justice C.K.ABDUL REHIM
Dated :06/12/2010
O R D E R
C.K.ABDUL REHIM, J.
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W.P.(C).Nos.36254,36255,36256,
36278,36288 & 36289 of 2010
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Dated this the 6th day of December, 2010
J U D G M E N T
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The petitioners in these cases are Service Co-operative
Societies registered under the provisions of the Kerala Co-
operative Societies Act. Challenge is against sustainability
of notices issued under Section 133(6) of the Income Tax
Act, interalia on the basis of the contention that, the
petitioners are not ‘persons’ coming within the purview of
Income Tax Act.
2. The issue was subject matter of challenge before
this Court in a batch of writ petitions, which ultimately
culminated in a judgment of a Division Bench, in
W.A.No.2333 of 2009 and connected cases. This Court
upheld the validity of similar notices, however, making it
clear that such notices can be issued only with prior
permission of the Director or the Commissioner, as the case
may be, and clarified that if such notices does not disclose
such prior permission the matter need be re-examined by
the authority concerned and further proceedings shall be
pursued only after obtaining such permissions.
W.P.(C).36254/10 & conn. cases -2-
3. It is brought to my notice that Special Leave Petition
filed against the above said judgment as SLP(C) No.3976 of 2010
has already been admitted by the Hon’ble Supreme Court and an
interim stay was granted against operation of the judgment of
the Division Bench. This being the position, I am of the view that
the authorities of the Income Tax Department concerned are not
justified in proceeding with issuing similar notices to the
petitioners herein, till the issue is finally settled by the apex
court.
4. Under the above mentioned circumstances, these writ
petitions are allowed and the respondents concerned are
directed to keep in abeyance all further steps pursuant to the
notices issued under Section 133(6) of the Income Tax Act, for
the time being. It is made clear that steps can be pursued only
subject to final outcome of the matter now pending before the
Hon’ble Supreme Court in S.L.P(C) No.3976 of 2010 and
connected cases.
C.K.ABDUL REHIM, JUDGE.
okb